Mr. Paul introduced
the following bill; which was referred to the
Committee on Financial
Services

A BILL

To abolish the Board of Governors of the Federal Reserve
System and the Federal reserve banks, to repeal the Federal Reserve Act, and
for other purposes.

1.

Short title

This Act may be cited as the
Federal Reserve Board Abolition
Act.

2.

Federal Reserve
Board abolished

(a)

In
General

Effective at the end of the 1-year period beginning on
the date of the enactment of this Act, the Board of Governors of the Federal
Reserve System and each Federal reserve bank are hereby abolished.

(b)

Repeal of
Federal Reserve
Act

Effective at the end of the 1-year period
beginning on the date of the enactment of this Act, the
Federal Reserve Act is hereby
repealed.

(c)

Disposition of
Affairs

(1)

Management
during dissolution period

During the 1-year period referred to in
subsection (a), the Chairman of the Board of Governors of the Federal Reserve
System—

(A)

shall, for the
sole purpose of winding up the affairs of the Board of Governors of the Federal
Reserve System and the Federal reserve banks—

(i)

manage the
employees of the Board and each such bank and provide for the payment of
compensation and benefits of any such employee which accrue before the position
of such employee is abolished; and

(ii)

manage the assets
and liabilities of the Board and each such bank until such assets and
liabilities are liquidated or assumed by the Secretary of the Treasury in
accordance with this subsection; and

(B)

may take such
other action as may be necessary, subject to the approval of the Secretary of
the Treasury, to wind up the affairs of the Board and the Federal reserve
banks.

(2)

Liquidation of
assets

(A)

In
general

The Director of the Office of Management and Budget shall
liquidate all assets of the Board and the Federal reserve banks in an orderly
manner so as to achieve as expeditious a liquidation as may be practical while
maximizing the return to the Treasury.

(B)

Transfer to
treasury

After satisfying all claims against the Board and any
Federal reserve bank which are accepted by the Director of the Office of
Management and Budget and redeeming the stock of such banks, the net proceeds
of the liquidation under subparagraph (A) shall be transferred to the Secretary
of the Treasury and deposited in the General Fund of the Treasury.

(3)

Assumption of
liabilities

All outstanding liabilities of the Board of Governors
of the Federal Reserve System and the Federal reserve banks at the time such
entities are abolished, including any liability for retirement and other
benefits for former officers and employees of the Board or any such bank in
accordance with employee retirement and benefit programs of the Board and any
such bank, shall become the liability of the Secretary of the Treasury and
shall be paid from amounts deposited in the general fund pursuant to paragraph
(2) which are hereby appropriated for such purpose until all such liabilities
are satisfied.

(d)

Report

At
the end of the 18-month period beginning on the date of the enactment of this
Act, the Secretary of the Treasury and the Director of the Office of Management
and Budget shall submit a joint report to the Congress containing a detailed
description of the actions taken to implement this Act and any actions or
issues relating to such implementation that remain uncompleted or unresolved as
of the date of the report.